1. This is an appeal against a judgment given by Govindan Nair, J. whereby he vacated a sale conducted under the Travancore-Cochin Revenue Recovery Act (VII of 1951), hereinafter called the 1951 Act, and thus allowed O. P. 839 of 1965 which was filed for that relief and the two questions arising for decision in the appeal are whether purchase of an item of land by Government for a nominal amount under S.36A (2) of the 1951 Act is permitted only when there is arrear of public revenue due on it and whether a land can be treated as one in respect of which there is arrear of public revenue if it is mortgaged to the State for taking a loan under the Travancore-Cochin State Aid to Industries Act, (XIX of 1952) hereinafter called the 1952 Act, and the person aided has defaulted to pay back the loan as contracted.

2. The relevant facts can be set out in a short compass. 25 cents of land belonging to the Respondent, who was the Petitioner in O. P. 839 of 1965 was mortgaged by him along with other properties to the State and he took from the State a loan of Rs. 32,000 under the 1952 Act for storing tannery works. The agreement was to pay back the amount borrowed in 40 half-yearly